Sensus Healthcare Experiences Revenue Surge in Q2 2024

Sensus Healthcare, a medical device company focused on treatments for non-melanoma skin cancer and keloids, has announced impressive revenue growth for the second quarter of 2024. The company’s revenue surged to $9.2 million, more than double the figure from the same period last year, with a net income of $1.6 million, representing a strong recovery from a previous net loss.

Key factors driving this expansion include the launch of the Fair Deal Agreement, a new model for recurring revenue, and the successful sale of the first image-guided SRT-100 Vision system in Asia. Sensus Healthcare is optimistic about future growth, with plans to enhance its international presence and a healthy research and development pipeline awaiting regulatory approval.

### Key Takeaways
– Sensus Healthcare’s Q2 revenue hit $9.2 million, more than a 100% increase year-over-year.
– The company recorded a net income of $1.6 million, a notable turnaround from a net loss of $0.4 million in the same quarter last year.
– They shipped 23 systems, including three to international markets, showcasing strong sales momentum.
– The Fair Deal Agreement program secured 15 contracts, with a goal of reaching 50 by the year’s end.
– Sensus Healthcare’s first sale of the image-guided SRT-100 Vision system occurred in Asia.
– The company anticipates significant contributions from recurring revenue streams in the second half of 2025.
– Cash reserves reached $26.4 million as of June 30, 2024, with no borrowings.
– Sensus Healthcare awaits FDA approval for the TDI product, with a projected gross margin of approximately 60%.

### Company Outlook
– Plans to enter two to three new international markets annually.
– Expects considerable recurring revenue to commence in the latter half of 2025.
– Projects to have sufficient inventory available in the fourth quarter to meet rising demand.

### Challenges
– Accounts receivable increased to $18.3 million, indicating potential cash flow issues.
– Revenue from the Fair Deal Agreement remains a minor part of total revenue at this time.

### Positive Highlights
– Gross profit for the quarter was $5.4 million, with adjusted EBITDA at $2.1 million.
– Strong cash position with $26.4 million and no debt enhances financial stability.
– Expansion into international markets, with three systems sold overseas this quarter.

### Areas for Improvement
– The company has not provided a detailed breakdown of recurring revenue compared to outright equipment sales, although it indicates that most revenue stems from equipment sales.

### Q&A Highlights
– Sensus Healthcare is consolidating all features for the TDI product into a single FDA submission.
– The company will engage in virtual meetings with investors for further discussions regarding financial results.
– The upcoming third-quarter results are expected to be released in November.

Sensus Healthcare’s successful second-quarter performance underscores a significant turnaround and lays a strong foundation for growth heading into the future. With a focus on expanding international markets, innovative revenue strategies like the Fair Deal Agreement, and a dynamic R&D agenda, the company is well-positioned for continued success in the non-melanoma skin cancer and keloid treatment sectors. Investors and stakeholders are expected to closely monitor the company as it progresses with its growth strategy and navigates the regulatory landscape.